Business Globalization of World Politics †Free Samples to Students

Question: Discuss about the Business Globalization of World Politics. Answer: Introduction This assignment is about Globalization and International Business. The positive and negative impacts of globalization and the issues involved in future of Globalization which is a process of economic integration of markets globally in terms of business and finance. It is one of the emerging trends in business. The act of globalizing to other parts of world comes with various issues and that are explained here under the assignment. International business is used to describe the transactions which are all commercial in nature includes investments, sales, logistics, government transactions and they take place between two or more business or nations operating in different countries. The purpose of private companies behind taking deals and conduct overseas transactions is to earn profit and on the other hand government undertake such transactions or deals for the purpose of political factor. So it can said that it is a broad term which refers to the activities (exchanging goods, services and resources) involving cross border transactions between two or more countries. The companies that are indulge in International Business or have an worldwide approach to manufacture goods in various nations can be referred as International Corporations also Multinational Companies. International Business transactions includes transfer of goods and services, technology, managerial knowledge and also involves imports and exports. International Business has various features as follows: The operations they conduct, marketing and production activities are on a huge scale. There is an integration of economies of most of the countries as they use finance, labor, technology and infrastructure from different countries. It has to face a keen competition in the global market. It gives benefits to the participating countries and a rapid industrial development to those who are engage in international business activities. International Business also faces few restrictions from other countries in terms of entry or inflow and outflow of capital. The term Globalization refers to the penchant of international trade and investments in goods, services, informational technology and outsourced manufacturing in order to intertwine the diverse countries together. Globalization lead to increase both the international trading and the cultural exchange. To conclude it is a process of integrating companies, people and government of various nations. When companies open up their trade and investment to multinational corporations and go global by attracting global capital this result in integration and interconnectedness of the economies of countries. Globalization is a win win situation for the countries that are producing a particular product in large quantity as they can export those larger quantities to other countries that are less efficient in producing that particular product. Looking at various dimensions of globalization and its impact on global economy and migration of people from lower class status to middle class (Baylis, Owens, Smith, 2017). Through global communications, markets and production Globalization has opened up the gates of global activity in regard to money making. It has bought many benefits in developed countries as well as negative impacts with it. Positive effects of Globalization It is not possible to describe the extent of positive impacts of globalization, it does include number of factors which competition, technology, trade, investment, employment, culture and education (Appadurai, Giddens, Wallerstein, 2015). Foreign investment: It is one of the strong positive aspect of Globalization is the flow of foreign capital. The amount of foreign investment inflow that flows into countries mainly developing countries. A lot of companies directly invest in developing countries as these countries give investors the good proposals and a wide market. Competition: Globalization comes with a positive approach towards competition by improving the quality of products due to global competition. The domestic companies are compelled to raise the standard of their product in order to compete with the foreign investors in this way customers and economy of the country get positive results and grow. Stabilized security: The large part of the economy depends on the Globalization in financial terms as there is so much violence goes around in the world but globalization has stopped many conflicts by way of improving financial health of the country. So Globalization helped in indirect way by improving world security. Cultural Management: Countries that are rich in their culture, wealth and education are the symbols of affluence, a popular cultural force and embrace other countries by providing western styles in their product and patterns of behavior. Negative effects of Globalization As every good thing comes with its own pros and cons here, Globalization do have negative impacts to the developed countries. These impacts include various factors which suffer negativity from globalization they are insecure jobs, price fluctuations and currency fluctuation (Hirst, Thompson, Bromley, 2015). Insecure jobs: People have insecure jobs in developed countries and outsource manufacturing and white collar jobs it results in lesser job for their people in home country. Most of the people from the field of accountants, programmers and scientist who have lost their jobs because they get outsourced cheaper employees from other countries. Price Fluctuation: Due to the high rise in competition, developed countries are bound to decrease their prices for products because other countries are offering the same product in a cheaper rate. This situation result in price fluctuation to maintain their customer and this becomes a disadvantage as it reduces the ability to improve the social welfare in their own country. Western Culture: Globalization has led to spread western culture all over the world. People get influence by the varied culture and practice the same by ignoring their own culture in the country they are residing in. The dressing styles, language and other habits they practice which ultimately cause misunderstanding and creates language barrier. Conclusion It is concluded from the study on International Business Management and Globalization that this trend bring an emergence in the economy of developing as well as developed countries by integrating the economies of the world and improving the living standards. The effects of Globalization has both aspects negative and positive but the weigh is on positive side as it brings progress in business, socio-cultural, infrastructure, technology advancements and increased number of exports. References Appadurai, A., Giddens, A., Wallerstein, I. (2015, October). SOCIAL IMPACT OF GLOBALIZATION ON DEVELOPING COUNTRIES. InNational Conference on(p. 72). Baylis, J., Owens, P., Smith, S. (Eds.). (2017).The globalization of world politics management: An introduction to international relations. Oxford University Press. Hirst, P., Thompson, G., Bromley, S. (2015).Globalization in question. John Wiley Sons.